Riding the Winds of Change

Originators probably have heard enough about the harsh, cold
first quarter of 2014. Admittedly, the market is still recovering from one of
the worst origination slumps in years, but it is recovering. And although
there’s consolidation taking place across the industry, there are good loan
officers, brokers, executives and owners considering a change of circumstances.
There are also plenty of good companies seeking to improve the talent and
capability of their teams, as well.

Outside of the traditional job-search parameters, how can
you go about shaping your next arrangement in the world of mortgage
origination? It’s not as though there’s a single, industry-wide job board for
the mortgage arena, and even if there was, it wouldn’t be helpful for people
interested in maintaining bridges with their current companies. Recruiters are
sometimes used by originators looking to make a change in their careers, but
recruiting companies don’t often have the insider knowledge required to get
around in the mortgage industry.

The fact is that, whether you’re a loan officer, a broker or
even the owner of a small mortgage company, there are some universal truths to
ensuring that your next place of business or position will be enjoyable and
productive. Not surprisingly, there are no silver bullets or easy solutions.
Rather, hard work, effort and integrity are paramount when finding the
opportunity that’s right for you.

The mortgage arena remains a relationship-based industry
where word-of-mouth travels fast. Your
reputation — good or bad — will speak much louder than anything in your
LinkedIn profile. Many meaningful positions and opportunities are, to some
degree, set aside or even created by the reputation of a person being the
“right fit.” So, when considering a new phase of your career, start with an
honest evaluation of your body of work and, more importantly, how people
perceive you and your efforts.

Mortgage professionals who are known for going the extra
mile for their clients — or, even better, their clients’ clients — are people
who will always find themselves in demand. If you already have that reputation,
keep it up and find ways to go even further when you can. If you don’t, it’s
time to get started building that reputation.

Of course, effort is a big part of the equation in this
regard, but it’s not the only element. If you don’t use software that allows
your clients and their Realtors to easily see the status of a pending
transaction, it’s time to consider incorporating such a feature into your
business. The wait between a sales agreement and a closing can feel like an
eternity to anxious homebuyers, and

Realtors often get the brunt of that anxiety. Realtors who
know that they can provide their clients with the latest and most accurate
information can feel more at ease, and the same goes for their — and your —
clients.

Another simple, albeit not-so-easy, way to build your
reputation is to reduce your turn times. Although this is much more easily said
than done, it’s a fact of this business that lenders, clients and colleagues
know exactly who has the best — and worst — turn times.

For the most part, this is relative, and admittedly, almost
everyone’s turn times are longer today. If, however, you’re in a position to
ensure that your company has efficient processes, effective compliance and an
overall workflow that doesn’t lurch from choke point to choke point, your
company’s reputation for turn times will be your reputation, as well.

So, be flexible. Be creative. Be willing to find out what
others are doing to cut their turn times within the boundaries of the law. But
don’t, whatever you do, simply sit back and complain that new regulations have
hindered your process. That excuse will only harm your reputation if and when
you seek greener pastures some day.

Do your research

It’s amazing how many people seek to change brokerages or
even sell their own mortgage companies without doing their homework and due
diligence. Again, this is a relationship-based business. People do not hire
employees or buy businesses out of a magical directory. The more people you
know — the more current you are with them and the more you listen to and digest
what they’re telling you — the easier it will be to find your next gig.

Remember, networking involves listening as well as talking.
It involves giving as well as taking. Following these common-sense rules will not
only open the doors to information and opportunity for you, but will also make
it a little easier for the folks at your next opportunity to welcome you and
not someone else on board. As complex as we’d like to think recruiting,
investing and selling are, many choices still come down to likeability, whether
we want to admit it or not.

Be valuable

In today’s mortgage industry, staffs are leaner, and despite
the legions of industry attorneys and consultants, no one is truly sure what
makes a company 100 percent compliant. Market share is replacing volume as
origination volumes go down and transaction costs go up. If you’re an
independent loan officer or broker, it’s no longer just your job to sell loans.
It’s also your job to understand as much about compliance, marketing and lead
generation as you can.

If you’re looking to sell your shop, the team you leave
behind should be worthy and well-trained. Make it easy for your next employer,
brokerage or potential investor/purchaser to choose you. In uncertain times,
it’s not enough to do one thing well. You’ve got to be a resource in as many
places as you can.

In that same vein, client loyalty and a reputable book of
business speak highly of business owners seeking to sell or professionals
seeking a change of scenery. Of course, everyone in the mortgage industry would
like a bigger book of business, but does your business tend to see a number of
repeat clients? Do they come to you as a resource or adviser even on matters
that may not directly involve any deals you are working on for them at the
moment? Do they refer other businesses or friends to you? If not, take a deep
dive into how strong your relationship is with your clients and fix what’s
wrong.

• • •

You may have a number of friends and colleagues in the mortgage
world who spend a lot of time wringing their hands and talking eagerly of
“getting out” these days. Maybe it’s time. Maybe it’s not. If that is your
intention, however, jumping at the first thing that comes along is an excellent
recipe for a future filled with regret and lost opportunities.

The mortgage industry is not coming to an end. Origination
volumes will improve eventually. The government will not regulate our trade out
of existence. Business may be bumpy for a while, but that doesn’t mean you have
to jump at the first offer you receive. If your due diligence, advisers and
even your gut tell you that the next opportunity is not the right fit, stick
with what you know — at least for now.

Robert M. Rubin is the principal of Southfield, Mich.-based The Business Loan Connection, a brokerage that brings together mortgage-lending companies issuing and using warehouse-lending facilities. He has been involved actively in the mortgage industry since 1964 and has run a successful mortgage-lending business for 30 years. He also has been active within the Mortgage Bankers Association and the National Home Equity Mortgage Association. Reach Rubin at bobr@tblnc.com.